POWER PLANT INPUT/INPUT CREDIT ADMISSIBILITY

[SURYA KANT GUPTA]

Is there any judgement with regard to availment of CENVAT credit on input/input services used in CAPTIVE POWER PLAN particularly given by HON'BLE SUPRREME COURT

AI Summary

CENVAT Credit Eligibility: Captive Power Plant Use for Manufacturing vs. Selling Electricity Externally. Refer to Maruti Suzuki Ltd Case. A query was raised regarding the admissibility of CENVAT credit on inputs and input services used in captive power plants, specifically if there is a relevant Supreme Court judgment. One response clarified that if the captive power plant is within the manufacturing premises and the power is used entirely for manufacturing, CENVAT credit is eligible. Another response referenced a Supreme Court case involving Maruti Suzuki Ltd, indicating that if electricity from a captive power plant is partly sold outside, the proportionate CENVAT credit on inputs must be reversed.